Four Valley men sentenced in multi-million dollar kickback conspiracy

MCALLEN, Texas (ValleyCentral) — Four Valley residents have been sentenced for their roles in a conspiracy to pay kickbacks in exchange for prescription referrals, the U.S. Department of Justice announced.

John Ageudo Rodriguez, 55, Mohammad Imtiaz Chowdhury, 44, and Hector de la Cruz Jr., 54, all of Edinburg, and Alex Flores Jr., 55, of McAllen, were sentenced in the $110 million kickback conspiracy.

Rodriguez, a former licensed pharmacist, owned and operated Pharr Family Pharmacy.

According to the U.S. Department of Justice, Rodriguez conspired with multiple people, including Chowdhury, De La Cruz, and Flores, to pay kickbacks to medical providers who referred prescriptions to his pharmacy.

Rodriguez then billed various benefit programs, including the Department of Labor, TRICARE and Medicare, for millions of dollars in claims.

From 2014 to 2016, his pharmacy submitted more than $110 million in claims to federal health care programs for compound drugs.

"Illegal kickbacks are the engine that drives health care fraud," said U.S. Attorney Nicholas J. Ganjei. "Our office will aggressively pursue fraud, waste, and abuse that cost taxpayers millions, if not billions, every year."

A U.S. District judge ordered Rodriguez to serve five years in federal prison.

De La Cruz and Flores were sentenced to nearly four years, while Chowdhury received a 2.5-year term.

All four men must also serve three years of supervised release following completion of their sentences.